Indonesia in 2013: Anticipating 2014

Indonesia

Introduction

Indonesia in 2013 was a nation in anticipation. Unlike the 1990s, when Indonesia was waiting for the fall of authoritarianism,¹ it now waits for the next stage of democratic consolidation. 2014 will see the fourth parliamentary election and third presidential election since the Reformasi movement in 1998. The Susilo Bambang Yudhoyono (SBY) administration has overseen much progress for Indonesia’s electoral democracy, in particular the full implementation of the direct election of regional leaders. However, some of the aspirations of the Reformasi movement remain unfulfilled. Corruption is still deeply embedded, and parties are yet to fully act as institutional conduits for the interests and aspirations of the people. As SBY will not be able to run for a third term in office, the political buzz in 2013 revolves around the question of who will become Indonesia’s second popularly elected president, and whether he or she will be able to resolve some of the country’s deep-seated problems. In addition to widespread corruption, which has plagued and limited the effectiveness of political parties, sectarian and communal tensions continued to brew in 2013 under the watch of a weak state.

On the international front, Indonesia continued to pursue an agenda of international and regional cooperation through the Asia-Pacific Economic Cooperation (APEC) and Association of Southeast Asian Nations (ASEAN) platforms, as well as ties with regional economic powerhouses such as China, India and South Korea. While relations with Australia’s new Abbott government started off on a sure footing, this was soon marred by a diplomatic spat over accusations that the Australians had been wiretapping Indonesian leaders. At the same time, the Indonesian economy faced tough challenges managing its growing current account deficit amidst capital outflows as the US tapers off its loose monetary policy. The issues that Indonesia faced in 2013 will be addressed in turn in the following sections.

Corruption: One Against A Million?

Public attention on corruption continued to heighten as more high-profile cases captured the headlines. Besides showing the prevalence of corruption, the latest cases proved that it was not only well-institutionalized but also adaptable. While the Komisi Pemberantasan Korupsi (KPK, Corruption Eradication Commission) had made serious inroads into eradicating corruption through the prosecution of high-profile politicians and officials, the remarkable scale of corruption these cases reveal suggests that fully clamping down on corruption remains a substantial challenge in Indonesia.

October 2013 saw the arrest of Akil Mochtar by the KPK. The chief justice of the Constitutional Court (MK, Mahkamah Konstitusi) was detained for allegedly taking bribes from Golkar lawmaker Chairun Nisa, a member of the House of Representatives’ Commission II which oversees regional autonomy. Mochtar had also been named as a suspect in another case on the Lebak (West Java) elections legal dispute. The case exemplifies the crippling problem of corruption and the extent of its grip in Indonesia. Specifically, the MK was initially established because of public distrust of the Supreme Court, which was increasingly perceived as corrupt and nepotistic, frequently producing questionable decisions. MK’s juridical reach is extensive, as it has the last say on disputes concerning electoral results. As local elections are rife with violations, the court increasingly becomes involved in deciding winners, and as such, has become a focal point for bribery and corruption. Now that its chief justice has been arrested for a crime that the court is supposed to prosecute, the MK has proven that cleaning up state legal institutions remains very difficult.

Another example of the extent of corruption is shown by the arrest of Rudi Rubiandini by the KPK in August. Named a suspect in a bribery case, Rubiandini was a well-respected lecturer at the prestigious Bandung Technology Institute and chief of the Upstream Oil and Gas Regulatory Task Force (SKK Migas, Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi). SKK Migas was established in November 2012 to replace the state upstream oil and gas regulator (BP Migas, Badan Pelaksana Kegiatan Usaha Hulu...